News ID: 115386
Published: 0159 GMT April 12, 2015

Official: Kiev in need of $1.5bn for eaast Ukraine rebuilding

Official: Kiev in need of $1.5bn for eaast Ukraine rebuilding

Ukraine needs about USD 1.5 billion for the reconstruction of its eastern regions, which have seen months of fierce fighting between the army and militant forces.

Ukraine’s Deputy Prime Minister and Regional Development Minister Hennadiy Zubko said in a televised interview with the national Fifth Channel on Saturday, “We are ready to offer both humanitarian response plan for the situation that arose in Ukraine, and the assessment of the reconstruction needs in Donbas (eastern regions) that is about $1.5 billion.” Press TV reported.

The comments came days after Germany and Ukraine signed a memorandum of understanding over Berlin’s allocation of a USD-539-million loan to Kiev.

Zubko said on April 1 that the government in Kiev is planning to use the money for rebuilding Ukraine’s east in a move that includes modernization of infrastructure and construction of housing.

Te Ukrainian government is preparing to hold an international conference on the financial support of the country due on April 28, with the Ukrainian deputy minister saying the participants in the meeting may assist in gathering additional funds for Kiev.

Ukraine is struggling with financial problems. Official data recently indicated that the annual inflation rate in the country jumped to 45.8 percent following a steep acceleration of 10.8 percent in March.

The country’s currency, hryvnia, also fell almost 50 percent against the US dollar in 2014.

A shaky ceasefire deal was signed between the Kiev government and militants in the east in February. However, the country stills suffers from a combination of monetary, budgetary, industrial, banking and energy crises that could make Kiev reliant on outside help for years.

Resource: Press TV
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